JACKSON, Mich., Oct. 18 /PRNewswire-FirstCall/ -- CMS Energy (NYSE : CMS ) elected to mandatorily convert on Sept. 30, 2010 (the "Mandatory Conversion Date") all of its outstanding 4.50 percent Cumulative Convertible Preferred Stock, Series B (the "Convertible Preferred Stock").
In connection with the mandatory conversion, CMS Energy has determined the related conversion value owing upon such conversion for each share of Convertible Preferred Stock is $104.22. The conversion value has been determined by multiplying the conversion rate of 5.5791 shares of common stock per share of Convertible Preferred Stock by $18.68, the average of the closing sale prices of CMS Energy common stock on each of the 10 trading days beginning on, and including, Oct. 4, 2010 and ending on, and including, Oct. 15, 2010.
The conversion value for each share of Convertible Preferred Stock will be paid in the following forms of consideration: $50.00 in cash and approximately 2.9 shares of CMS Energy common stock. Cash will be paid in lieu of fractional shares.
CMS Energy expects to deliver amounts owing upon conversion to holders of the Convertible Preferred Stock on Oct. 19, 2010.
CMS Energy is a Michigan-based company that has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation.
This news release contains forward-looking statements. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS", each found in CMS Energy's Form 10-K for the year ended December 31, 2009 and Forms 10-Q for the quarters ended March 31, 2010 and June 30, 2010. CMS Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and discuss important factors that could cause CMS Energy's results to differ materially from those anticipated in such statements.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com
SOURCE CMS Energy